REG - BlueRock DiamondsPLC - Interim Results <Origin Href="QuoteRef">BRD.L</Origin> - Part 2

Bluerock DiamondsAnnouncement

19/09/2017 07:07

- Part 2: For the preceding part double click  ID:nRSS0965Ra 

(Kareeboompan) of the Farm 142, Portion 1 (Westhoek) of
the Farm 113, and Portion 2 (Klipvlei) of the Farm 113. The financial
provision was calculated in accordance with Regulation 54 of the Minerals and
Petroleum Resources Development Act 2002 (Act 28 of 2002) and is dated 23 June
2017. 
 
14. Cash used in operations 
 
                                                               30 June 2017£Unaudited  30 June2016£Unaudited  31 December 2016£Audited  
                                                                                                                                        
 Loss before taxation                                          (867,164)               (310,324)              (495,493)                 
 Adjustments for non-cash items:                                                                                                        
 Depreciation and amortisation                                 131,036                 79,905                 171,258                   
 Loss on disposal of fixed assets                              18,197                  7,809                  -                         
 Embedded derivative charge                                    (220,388)               -                      292,839                   
 Share based payment expense                                   77,903                  -                      34,339                    
 Impairment on acquisition of Diamond Resources (Pty) Limited  -                       -                      32,826                    
 Finance charge on convertible loan notes                      28,483                  30,113                 60,229                    
 Foreign exchange revaluation gain / (loss) on fixed assets    17,768                  (75,384)               (220,602)                 
 Movements in provisions                                       (1,701)                 13,345                 31,080                    
 Changes in working capital:                                                                                                            
 Decrease / (increase) in trade and other receivables          87,686                  (34,330)               (124,374)                 
 Increase in trade and other payables                          17,564                  143,582                6,177                     
 (Increase) / decrease in inventories                          (13,728)                23,791                 48,463                    
                                                               (724,344)               (121,493)              (163,258)                 
 
 
15. EPS (Earnings per share) 
 
                                                   30 June 2017£Unaudited  30 June 2016£Unaudited  31 December 2016£Audited  
 Loss attributable to ordinary shareholders        (550,067)               (353,777)               (814,981)                 
 Weighted average number of shares                 57,645,136              35,009,972              39,466,581                
 Loss per share basic and diluted                  (0.01)                  (0.01)                  (0.02)                    
                                                                                                                             
 Weighted average number of shares after dilution  57,645,136              35,009,972              39,466,581                
 Fully diluted earnings per share                  (0.01)                  (0.01)                  (0.02)                    
 
 
Share options granted to directors could potentially dilute EPS in the future
but are not included in a dilutive EPS calculation because they are
antidilutive for the period. 
 
16. Related party transactions 
 
 Relationships                                                                                                 
                                                                                                               
 Minority Interest - William van Wyk  Kgalagadi Engineering & Mining Supplies (Pty) LtdGhaap Mining (Pty) Ltd  
 Shareholder - Mark Poole             BlueRock Diamond                                                         
 Shareholder's Daughter - Emma Poole  BlueRock Diamond                                                         
 
 
Placing and Subscription 
 
As part of the £366,000 placing and subscription on 1 June 2017, Paul Beck,
Non-Executive Chairman of the Company, has subscribed for 333,333 New Shares,
following which he will have a beneficial interest in 2,551,231 Ordinary
Shares representing 3.8% of the issued share capital and total voting rights
of the Company. Included in Mr Beck's beneficial interest are 455,455 Ordinary
Shares held by Front Square Securities Limited, a company wholly owned by Mr
Beck and his wife and of which Mr Beck is a director. 
 
Borrowings 
 
On 15 March 2017, the Company agreed the terms of a £150,000 unsecured loan
facility with Tim Leslie and Paul Beck, two of its directors, and Mark Poole,
one of its major shareholders (the "Loan Facility") in order to provide extra
working capital. 
 
The Loan Facility, comprising of a maximum contribution from Tim Leslie and
Mark Poole of £62,500 each and Segar Properties (Hyde Park) Limited, a company
wholly owned by Paul Beck, £25,000, has a term until 31 December 2017 and a
coupon of 10% per annum, payable at the end of the term. At 30 June 2017 the
full loan facility had been drawn down and remained outstanding, for further
detail see note 12. 
 
Additionally, in June 2017 Mark Poole advanced £194,377 in advance of agreeing
the asset finance facility, which was agreed on 20 July 2017, see note 17 for
further details. 
 
Transactions with related party companies 
 
Kareevlei Mining made payments of £43,499 (2016: nil) to Kgalagadi Engineering
& Mining Supplies (Pty)Ltd for the acquisition of mine equipment and related
services. William van Wyk is a shareholder in Kgalagadi Engineering & Mining
Supplies (Pty) Ltd. 
 
17. Events after the reporting period 
 
Asset finance facility 
 
On 20 July 2017, BlueRock Diamonds plc and its subsidiary Kareevlei Mining PTY
Limited have entered into an asset finance facility of up to £310,000 ("Loan
Facility") with Mark Poole, a substantial shareholder in the Company. The Loan
Facility will be used to purchase essential equipment for the efficient and
cost effective operation of the mine. 
 
The Loan Facility carries an interest rate of 10% over a five-year term,
repayable in 19 equal quarterly instalments following an initial three-month
interest free period. The Loan Facility is unsecured but it carries the right
for the purchase of the capital goods acquired utilising the Loan Facility for
ZAR 1 in the event of the Group's default. 
 
Placing and subscription update 
 
On 10 August 2017, the Company raised an aggregate of £860,000 (before
expenses) via the issue of 68,800,000 new ordinary shares of 1 pence each in
the capital of BlueRock Diamonds plc (the "New Shares") through a placing and
subscription at a price of 1.25 pence per New Share. 
 
Adam Waugh, Chief Executive Officer of the Company has agreed to subscribe for
4,000,000 New shares in the Fundraising. 
 
Extension of loan facility 
 
On 10 August 2017, BlueRock Diamonds plc successfully agreed the extension of
the maturity date on the six month loan facility of up to £150,000 entered
into on 15 March 2017 with Tim Leslie, Mark Poole and Segar Properties (Hyde
Park) Limited, a company wholly owned by Paul Beck. The extension from the
current maturity date of 15 September 2017 has been agreed to the 31 December
2017. The loan carries a coupon of 10% per annum, payable at the end of the
term and contains no conversion provisions. 
 
Issue of new share options 
 
On the 10 August 2017, BlueRock Diamonds plc announced that it has granted the
following new share options to Adam Waugh (the Company's CEO), Johan Milho,
(the Company's mine manager) and Paul Beck (the Company's non-executive
Chairman). The details of the issue are noted below: 
 
 Individual   Tranche ANo. of New Share Options  Tranche BNo. of New Share Options  
 Adam Waugh   3,417,740                          3,417,740                          
 Johan Milho  683,548                            683,548                            
 Paul Beck    992,096                            992,096                            
 
 
Tranche A options have an exercise price of 1.25p, and Tranche B options have
an exercise price of 2.25p. 
 
This information is provided by RNS
The company news service from the London Stock Exchange